CNG shock: Rs 3.89 per kg hike puts fresh squeeze on Delhi-NCR

Commuters and transport operators across Delhi-NCR are set to feel another squeeze on their household budgets after Indraprastha Gas Limited (IGL) raised compressed natural gas (CNG) prices by Rs 3.89 per kg, citing a steep rise in imported liquefied natural gas (LNG) costs.

The revised prices came into effect on Saturday, taking CNG to Rs 86.98 per kg in Delhi. Prices have risen to Rs 95.59 per kg in Noida and Ghaziabad, Rs 95.47 per kg in Meerut and Rs 92.01 per kg in Gurugram.

For ordinary commuters, the increase means another addition to already stretched travel budgets. Auto-rickshaw drivers, cab operators and delivery workers, who depend heavily on CNG, are likely to face higher daily running costs, while passengers could eventually bear the burden through higher fares.

The latest increase is IGL’s fifth CNG price hike this year and the first since May. Earlier, the company raised prices by a cumulative Rs 6 per kg in four stages over 10 days as global energy markets came under pressure amid the West Asia conflict.

The latest hike comes against a fresh surge in international LNG prices, with renewed tensions in West Asia disrupting cargo movements through the Strait of Hormuz. Global LNG prices have nearly doubled since July from levels seen before the conflict, according to sources.

The Asia-JKM LNG benchmark has climbed from around $11 per MMBTU in February to $23.4 in August, while European TTF gas prices have risen from roughly $11.3 to $23.3 per MMBTU over the same period.

Winter preparations in Europe are adding to the pressure, as buyers replenish gas inventories ahead of seasonal demand. Increased competition for limited LNG cargoes is pushing prices higher and feeding pressure into energy markets worldwide.

The impact could extend beyond the fuel bill. Higher CNG costs raise operating expenses for public transport, taxis, commercial vehicles and goods carriers, potentially adding to the cost of everything from daily commutes to food and delivered goods.

For auto and taxi drivers, the hike threatens to eat further into already tight margins. For passengers, it could mean higher fares if operators pass on the additional cost. Small businesses and delivery workers could also face higher expenses as transportation costs climb.

CNG prices vary across cities because of differences in state-level taxes, but the pressure is common across the region: another rise in fuel costs at a time when households are already grappling with the rising cost of everyday necessities.

With international gas markets still vulnerable to geopolitical shocks, further increases cannot be ruled out if LNG supplies remain tight. For millions of people across Delhi-NCR, the latest CNG hike is yet another reminder of how events far beyond their borders can quickly find their way into the monthly household budget.

With IANS inputs